Wireless IoT leader posts 33% year-over-year growth and earns industry-first security distinction
AUSTIN, Texas, Aug. 5, 2025 /PRNewswire/ -- Silicon Labs (NASDAQ:SLAB), the leading innovator in low-power wireless, reported financial results for the second quarter, which ended July 5, 2025.
"The Silicon Labs team delivered strong sequential and year-over-year revenue growth of 9% and 33%, respectively, while also driving improved profitability," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "Moving forward, we believe we are uniquely positioned to outperform the market underpinned by our industry-leading solutions, share gains, and consistent execution."
Second Quarter Financial Highlights
- Revenue was $193 million
- Industrial & Commercial revenue for the quarter was $110 million, up 25% year-over-year
- Home & Life revenue for the quarter was $83 million, up 45% year-over-year
Results on a GAAP basis:
- GAAP gross margin was 56.1%
- GAAP operating expenses were $131 million
- GAAP operating loss was $23 million
- GAAP diluted loss per share was $(0.67)
Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:
- Non-GAAP gross margin was 56.3%
- Non-GAAP operating expenses were $107 million
- Non-GAAP operating income was $1 million
- Non-GAAP diluted earnings per share was $0.11
Business Highlights
- Announced the upcoming general availability of the SiXG301 - Silicon Labs' first Series 3 device and the world's first device to achieve PSA Level 4 iSE/SE certification. This milestone reinforces Silicon Labs' long track record of industry-first achievements and sets a new benchmark for trusted embedded computing.
- Introduced the upcoming SiXG302 Series 3 device, expected to sample next year with new-to-industry energy efficiency and wireless performance targeting both Bluetooth and Matter applications, setting another industry performance benchmark.
- Announced the sixth annual Works With developer conference series - returning this fall with in-person events in Austin, Shenzhen, and Bangalore, followed by a global virtual event. Works With 2025 will bring together business leaders, engineers, and ecosystem partners to explore emerging trends in wireless connectivity, security, Matter, and the growing role of artificial intelligence and machine learning in IoT development.
Business Outlook
The company expects third-quarter revenue to be between $200 to $210 million. The company also estimates the following results:
On a GAAP basis:
- GAAP gross margin to be between 57% to 58%
- GAAP operating expenses of approximately $130 million to $133 million
- GAAP diluted loss per share between $(0.60) to $(0.20)
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables:
- Non-GAAP gross margin to be between 57% to 58%
- Non-GAAP operating expenses of approximately $107 million to $110 million
- Non-GAAP diluted earnings per share between $0.20 to $0.40
Earnings Webcast and Conference Call
Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs' website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through September 4, 2025.
About Silicon Labs
Silicon Labs (NASDAQ:SLAB) is the leading innovator in low-power wireless connectivity, building embedded technology that connects devices and improves lives. Merging cutting-edge technology into the world's most highly integrated SoCs, Silicon Labs provides device makers the solutions, support, and ecosystems needed to create advanced edge connectivity applications. Headquartered in Austin, Texas, Silicon Labs has operations in over 16 countries and is the trusted partner for innovative solutions in the smart home, industrial IoT, and smart cities markets. Learn more at silabs.com
Forward-Looking Statements
This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: fluctuating changes in global trade policies, including the imposition of tariffs, duties, trade sanctions, or other barriers to international commerce; the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of public health crises on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.
Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.
Silicon Laboratories Inc. | |||||||
Three Months Ended | Six Months Ended | ||||||
July 5, | June 29, | July 5, | June 29, | ||||
Revenues | $ 192,845 | $ 145,367 | $ 370,559 | $ 251,742 | |||
Cost of revenues | 84,736 | 68,784 | 164,673 | 120,090 | |||
Gross profit | 108,109 | 76,583 | 205,886 | 131,652 | |||
Operating expenses: | |||||||
Research and development | 87,821 | 85,909 | 176,040 | 166,559 | |||
Selling, general and administrative | 43,155 | 38,695 | 84,793 | 72,248 | |||
Operating expenses | 130,976 | 124,604 | 260,833 | 238,807 | |||
Operating loss | (22,867) | (48,021) | (54,947) | (107,155) | |||
Other income (expense): | |||||||
Interest income and other, net | 3,833 | 2,790 | 7,626 | 5,522 | |||
Interest expense | (251) | (263) | (535) | (772) | |||
Loss before income taxes | (19,285) | (45,494) | (47,856) | (102,405) | |||
Provision for income taxes | 2,532 | 36,663 | 4,431 | 36,278 | |||
Net loss | $ (21,817) | $ (82,157) | $ (52,287) | $ (138,683) | |||
Loss per share: | |||||||
Basic | $ (0.67) | $ (2.56) | $ (1.61) | $ (4.33) | |||
Diluted | $ (0.67) | $ (2.56) | $ (1.61) | $ (4.33) | |||
Weighted-average common shares outstanding: | |||||||
Basic | 32,682 | 32,124 | 32,570 | 32,018 | |||
Diluted | 32,682 | 32,124 | 32,570 | 32,018 | |||
Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.
The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||
Three Months Ended July 5, 2025 | ||||||||||||||
Non-GAAP Income Statement Items | GAAP Measure | GAAP Percent of Revenue | Stock Compensation Expense | Intangible Asset Amortization | Other Costs | Non- GAAP Measure | Non-GAAP Percent of Revenue | |||||||
Revenues | $ 192,845 | |||||||||||||
Gross profit | 108,109 | 56.1 % | $ 457 | $ — | $ — | $ 108,566 | 56.3 % | |||||||
Research and development | 87,821 | 45.5 % | 12,101 | 3,342 | — | 72,378 | 37.5 % | |||||||
Selling, general and administrative | 43,155 | 22.4 % | 7,333 | — | 755 | 35,067 | 18.2 % | |||||||
Operating expenses | 130,976 | 67.9 % | 19,434 | 3,342 | 755 | 107,445 | 55.7 % | |||||||
Operating income (loss) | (22,867) | (11.9 %) | 19,891 | 3,342 | 755 | 1,121 | 0.6 % | |||||||
Three Months Ended July 5, 2025 | ||||||||||||
Non-GAAP Earnings (Loss) Per Share | GAAP Measure | Stock Compensation Expense* | Intangible Asset Amortization* | Other Costs* | Income Tax Adjustments | Non- GAAP Measure | ||||||
Net income (loss) | $ (21,817) | $ 19,891 | $ 3,342 | $ 755 | $ 1,592 | $ 3,763 | ||||||
Shares Excluded Due to Net Loss | ||||||||||||
Diluted shares outstanding | 32,682 | 206 | 32,888 | |||||||||
Diluted earnings (loss) per share | $ (0.67) | $ 0.11 | ||||||||||
* | Represents pre-tax amounts |
Unaudited Forward-Looking Statements Regarding Business Outlook | ||||||
Three Months Ended | ||||||
Business Outlook | GAAP Measure | Non-GAAP Adjustments** | Non-GAAP Measure | |||
Gross margin | 57% to 58% | — % | 57% to 58% | |||
Operating expenses | $130 to $133 | $(23) | $107 to $110 | |||
Diluted earnings (loss) per share | $(0.60) to $(0.20) | $0.60 to $0.80 | $0.20 to $0.40 | |||
** | Non-GAAP adjustments include the following estimates: stock compensation expense of $21.6 million, intangible asset |
Silicon Laboratories Inc. | |||
July 5, | December 28, | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 314,459 | $ 281,607 | |
Short-term investments | 101,081 | 100,554 | |
Accounts receivable, net | 56,496 | 54,479 | |
Inventories | 80,871 | 105,639 | |
Prepaid expenses and other current assets | 64,841 | 59,754 | |
Total current assets | 617,748 | 602,033 | |
Property and equipment, net | 131,283 | 132,136 | |
Goodwill | 376,389 | 376,389 | |
Other intangible assets, net | 27,719 | 36,499 | |
Other assets, net | 67,926 | 75,617 | |
Total assets | $ 1,221,065 | $ 1,222,674 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 58,161 | $ 42,448 | |
Deferred revenue and returns liability | 3,856 | 3,073 | |
Other current liabilities | 58,657 | 52,362 | |
Total current liabilities | 120,674 | 97,883 | |
Other non-current liabilities | 39,311 | 44,770 | |
Total liabilities | 159,985 | 142,653 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued | — | — | |
Common stock – $0.0001 par value; 250,000 shares authorized; 32,815 and 32,458 | 3 | 3 | |
Additional paid-in capital | 111,562 | 78,227 | |
Retained earnings | 949,434 | 1,001,721 | |
Accumulated other comprehensive income | 81 | 70 | |
Total stockholders' equity | 1,061,080 | 1,080,021 | |
Total liabilities and stockholders' equity | $ 1,221,065 | $ 1,222,674 | |
Silicon Laboratories Inc. | |||
Six Months Ended | |||
July 5, | June 29, | ||
Operating Activities | |||
Net loss | $ (52,287) | $ (138,683) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation of property and equipment | 12,701 | 13,152 | |
Amortization of other intangible assets | 8,780 | 12,160 | |
Stock-based compensation expense | 39,605 | 29,455 | |
Deferred income taxes | 1,504 | 29,784 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,017) | (11,918) | |
Inventories | 24,631 | 28,123 | |
Prepaid expenses and other assets | 5,112 | 20,723 | |
Accounts payable | 12,812 | (19,341) | |
Other current liabilities and income taxes | 8,377 | (13,624) | |
Deferred revenue and returns liability | 783 | 1,206 | |
Other non-current liabilities | (6,965) | (6,703) | |
Net cash provided by (used in) operating activities | 53,036 | (55,666) | |
Investing Activities | |||
Purchases of marketable securities | (32,507) | (17,700) | |
Sales of marketable securities | 14,986 | 34,538 | |
Maturities of marketable securities | 17,019 | 97,458 | |
Purchases of property and equipment | (13,549) | (5,577) | |
Proceeds from sale of equity investment | — | 12,382 | |
Net cash provided by (used in) investing activities | (14,051) | 121,101 | |
Financing Activities | |||
Payments on debt | — | (45,000) | |
Payment of taxes withheld for vested stock awards | (13,752) | (15,213) | |
Proceeds from the issuance of common stock | 7,619 | 8,108 | |
Net cash used in financing activities | (6,133) | (52,105) | |
Increase in cash and cash equivalents | 32,852 | 13,330 | |
Cash and cash equivalents at beginning of period | 281,607 | 227,504 | |
Cash and cash equivalents at end of period | $ 314,459 | $ 240,834 | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/silicon-labs-reports-second-quarter-2025-results-302521796.html
SOURCE Silicon Labs